Q2 SaaS Revenue Grows to 76% of Total Revenue
Q2 SaaS Monthly ARPU Increases 12% Year-Over-Year to $394
Company Announces Strategic Restructuring Plan to Improve Operating Efficiencies
DALLAS, August 04, 2026--(BUSINESS WIRE)--Thryv Holdings, Inc. (NASDAQ:THRY) ("Thryv" or the "Company"), the provider of Thryv®, an AI-native growth platform for local service businesses, reported results for the second quarter of 2026.
"Our second quarter marked another step forward in the transformation of our business, with SaaS now representing 76% of our revenue and ARPU growing 12% year-over-year," said Joe Walsh, Thryv Chairman and CEO. "Our SaaS profile now reflects our deliberate focus on the newly launched Thryv Growth Platform, the first platform purpose-built for the small business owner with AI running underneath to turn every lead into measurable revenue. We are also announcing a restructuring plan that realigns our cost structure to focus on a SaaS operating model and extend the agentic AI capabilities embedded in Thryv's customer-facing platform. Looking ahead, we remain focused on reaccelerating the growth of our SaaS business. We are announcing today that we have partnered with Ooma and plan to establish a strategic partnership with Wix, with a shared focus on helping small businesses succeed."
The Company expects to incur total restructuring and related charges of approximately $20 million to $25 million, approximately 10% of which has already been incurred, with approximately 40% expected to be recognized in the second half of 2026 and the remaining 50% to be recognized in 2027. Cost savings are anticipated to begin in 2027, building to approximately $55 million to $60 million in gross annualized cost savings upon completion.
"We remain focused on optimizing the Thryv Growth Platform, a unified, AI-native growth offering, concentrating investments to scale the business and expand profitability. These initiatives are expected to be accretive to Adjusted EBITDA margins in the future, while strengthening the Company's free cash flow generation," stated Paul Rouse, Chief Financial Officer.
Second Quarter Financial 2026 Highlights:
SaaS revenue was $114.5 million, a decrease of 0.5% year-over-year, of which Market, Sell, Grow initiatives grew 21%1 year-over-year, offset by headwinds in legacy CRM products
Marketing Services revenue was $36.2 million
Consolidated total revenue was $150.7 million
Consolidated net loss was $16.7 million, or $(0.38) per diluted share; compared to net income of $13.9 million, or $0.31 per diluted share, for the second quarter of 2025
Consolidated Adjusted EBITDA was $20.8 million, representing an Adjusted EBITDA margin of 13.8%
SaaS Adjusted EBITDA was $13.6 million, representing an Adjusted EBITDA margin of 11.8%
Marketing Services Adjusted EBITDA was $7.3 million, representing an Adjusted EBITDA margin of 20.0%
Consolidated Gross Profit was $94.6 million
Consolidated Adjusted Gross Profit2 was $99.2 million
SaaS Gross Profit was $72.7 million, representing a Gross Margin of 63.5%
SaaS Adjusted Gross Profit1 was $76.2 million, representing an Adjusted Gross Margin of 66.6%
Recent Business Highlights and Metrics
Quality customers3 (defined as those contributing more than $400 in monthly recurring revenue) accounted for 72% of SaaS revenue3 in the second quarter of 2026
SaaS clients were 95 thousand at the end of the second quarter of 2026
Seasoned Net Revenue Retention4 was 90% for the second quarter of 2026
SaaS monthly Average Revenue per Unit ("ARPU")5 was $394 for the second quarter of 2026, an increase of 11.9% year-over-year
Outlook
Based on information available as of August 4, 2026, Thryv is issuing guidance6 for the third quarter of 2026 and updating full year 2026 as indicated below:
3rd Quarter | 4th Quarter | Full Year | ||||
(in millions) | 2026 | 2026 | 2026 | |||
SaaS Revenue | $111.0 - $112.0 | $111.0 - $114.0 | $453.0 - $457.0 | |||
SaaS Adjusted EBITDA7 | $8.5 - $9.5 | $9.0 - $10.0 | $42.0 - $44.0 |
3rd Quarter | 4th Quarter | Full Year | ||||
(in millions) | 2026 | 2026 | 2026 | |||
Marketing Services Revenue | $34.0 - $35.0 | $40.0 - $41.0 | $161.0 - $163.0 | |||
Marketing Services Adjusted EBITDA7 | $5.0 - $6.0 | $5.5 - $6.5 | $31.0 - $33.0 |
Earnings Conference Call Information
Thryv will host a conference call on Tuesday, August 4, 2026 at 8:30 a.m. (Eastern Time) to discuss the Company's second quarter 2026 results.
To listen to this conference call, please use this link. After registering, a confirmation email will be sent, including access details. We recommend registering a day in advance or at a minimum thirty minutes prior to the start of the call. A live webcast will also be available on the Investor Relations section of the Company's website at investor.thryv.com.
Thryv Holdings, Inc. and Subsidiaries Consolidated Statements of Operations and Comprehensive (loss) Income | |||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||
June 30, | June 30, | ||||||||||||||
(in thousands, except share and per share data) | 2026 | 2025 | 2026 | 2025 | |||||||||||
Revenue | $ | 150,728 | $ | 210,470 | $ | 318,412 | $ | 391,841 | |||||||
Cost of services | 56,168 | 63,850 | 114,596 | 125,933 | |||||||||||
Gross profit | 94,560 | 146,620 | 203,816 | 265,908 | |||||||||||
Operating expenses: | |||||||||||||||
Sales and marketing | 47,038 | 56,063 | 94,986 | 115,905 | |||||||||||
Research and development | 7,509 | 8,661 | 18,940 | 18,870 | |||||||||||
General and administrative | 41,156 | 52,356 | 86,975 | 104,627 | |||||||||||
Total operating expenses | 95,703 | 117,080 | 200,901 | 239,402 | |||||||||||
Operating (loss) income | (1,143 | ) | 29,540 | 2,915 | 26,506 | ||||||||||
Other income (expense): | |||||||||||||||
Interest expense | (5,035 | ) | (5,981 | ) | (9,176 | ) | (12,048 | ) | |||||||
Interest expense, related party | (2,483 | ) | (2,971 | ) | (4,949 | ) | (5,977 | ) | |||||||
Net periodic pension cost | (357 | ) | (778 | ) | (702 | ) | (1,546 | ) | |||||||
Other income | (446 | ) | 2,557 | 987 | 2,949 | ||||||||||
(Loss) income before income tax expense | (9,464 | ) | 22,367 | (10,925 | ) | 9,884 | |||||||||
Income tax expense | (7,196 | ) | (8,436 | ) | (1,193 | ) | (5,571 | ) | |||||||
Net (loss) income | $ | (16,660 | ) | $ | 13,931 | $ | (12,118 | ) | $ | 4,313 | |||||
Other comprehensive loss: | |||||||||||||||
Foreign currency translation adjustment, net of tax | (114 | ) | (72 | ) | (509 | ) | (259 | ) | |||||||
Comprehensive (loss) income | $ | (16,774 | ) | $ | 13,859 | $ | (12,627 | ) | $ | 4,054 | |||||
Net (loss) income per common share: | |||||||||||||||
Basic | $ | (0.38 | ) | $ | 0.32 | $ | (0.27 | ) | $ | 0.10 | |||||
Diluted | $ | (0.38 | ) | $ | 0.31 | $ | (0.27 | ) | $ | 0.10 | |||||
Weighted-average shares used in computing basic and diluted net (loss) income per common share: | |||||||||||||||
Basic | 44,358,330 | 43,744,144 | 44,283,478 | 43,579,171 | |||||||||||
Diluted | 44,358,330 | 44,303,331 | 44,283,478 | 44,586,162 | |||||||||||
Thryv Holdings, Inc. and Subsidiaries Consolidated Balance Sheets | |||||||
(in thousands, except share data) | June 30, 2026 | December 31, 2025 | |||||
Assets | |||||||
Current assets | |||||||
Cash and cash equivalents | $ | 9,136 | $ | 10,752 | |||
Accounts receivable, net of allowance of $13,144 in 2026 and $13,830 in 2025 | 127,756 | 136,394 | |||||
Contract assets, net of allowance of $2 in 2026 and $2 in 2025 | 622 | 411 | |||||
Taxes receivable | 1,172 | 8,134 | |||||
Deferred costs | 8,243 | 11,548 | |||||
Prepaid expenses and other current assets | 11,041 | 11,618 | |||||
Total current assets | 157,970 | 178,857 | |||||
Fixed assets and capitalized software, net | 49,242 | 50,885 | |||||
Goodwill | 253,809 | 253,809 | |||||
Intangible assets, net | 22,979 | 25,929 | |||||
Deferred tax assets | 137,604 | 133,221 | |||||
Other assets | 32,528 | 45,886 | |||||
Total assets | $ | 654,132 | $ | 688,587 | |||
Liabilities and Stockholders' Equity | |||||||
Current liabilities | |||||||
Accounts payable | $ | 5,509 | $ | 9,764 | |||
Accrued liabilities | 88,753 | 91,246 | |||||
Current portion of unrecognized tax benefits | 1,847 | 28,303 | |||||
Contract liabilities | 24,820 | 28,875 | |||||
Current portion of Term Loan | 21,000 | 10,500 | |||||
Current portion of Term Loan, related party | 14,000 | 7,000 | |||||
Other current liabilities | 2,518 | 3,905 | |||||
Total current liabilities | 158,447 | 179,593 | |||||
Term Loan, net | 115,886 | 125,419 | |||||
Term Loan, net, related party | 78,788 | 85,448 | |||||
ABL Facility | 14,057 | 25,120 | |||||
Pension obligations, net | 41,425 | 44,171 | |||||
Other liabilities | 33,967 | 10,697 | |||||
Total long-term liabilities | 284,123 | 290,855 | |||||
Commitments and contingencies | |||||||
Stockholders' equity | |||||||
Common stock - $0.01 par value, 250,000,000 shares authorized; 72,970,119 shares issued and 44,417,798 shares outstanding at June 30, 2026; and 72,002,129 shares issued and 43,815,268 shares outstanding at December 31, 2025 | 730 | 720 | |||||
Additional paid-in capital | 1,310,845 | 1,303,144 | |||||
Treasury stock - 28,552,321 shares at June 30, 2026 and 28,186,861 shares at December 31, 2025 | (499,764 | ) | (498,103 | ) | |||
Accumulated other comprehensive loss | (16,020 | ) | (15,511 | ) | |||
Accumulated deficit | (584,229 | ) | (572,111 | ) | |||
Total stockholders' equity | 211,562 | 218,139 | |||||
Total liabilities and stockholders' equity | $ | 654,132 | $ | 688,587 | |||
Thryv Holdings, Inc. and Subsidiaries Consolidated Statements of Cash Flows | |||||||
Six Months Ended June 30, | |||||||
(in thousands) | 2026 | 2025 | |||||
Cash Flows from Operating Activities | |||||||
Net (loss) income | $ | (12,118 | ) | $ | 4,313 | ||
Adjustments to reconcile net (loss) income to net cash provided by operating activities: | |||||||
Depreciation and amortization | 20,060 | 21,707 | |||||
Amortization of deferred commissions | 3,046 | 6,944 | |||||
Amortization of debt issuance costs | 1,465 | 1,648 | |||||
Deferred income taxes | (4,116 | ) | 2,310 | ||||
Provision for credit losses and service credits | 6,734 | 9,020 | |||||
Stock-based compensation expense | 7,537 | 13,745 | |||||
Net periodic pension cost | 702 | 1,546 | |||||
Gain on foreign currency exchange rates | (962 | ) | (2,787 | ) | |||
Other | 2 | 38 | |||||
Changes in working capital items, excluding acquisitions: | |||||||
Accounts receivable | 24,677 | 15,392 | |||||
Prepaid expenses and other assets | (389 | ) | (16,493 | ) | |||
Accounts payable and accrued liabilities | (33,831 | ) | (20,515 | ) | |||
Contract liabilities | (4,443 | ) | (13,748 | ) | |||
Other liabilities | 18,990 | (4,045 | ) | ||||
Net cash provided by operating activities | 27,354 | 19,075 | |||||
Cash Flows from Investing Activities | |||||||
Additions to fixed assets and capitalized software | (16,121 | ) | (14,855 | ) | |||
Other | — | (143 | ) | ||||
Net cash used in investing activities | (16,121 | ) | (14,998 | ) | |||
Cash Flows from Financing Activities | |||||||
Payments of Term Loan | — | (15,750 | ) | ||||
Payments of Term Loan, related party | — | (10,500 | ) | ||||
Proceeds from ABL Facility | 154,389 | 206,317 | |||||
Payments of ABL Facility | (165,451 | ) | (190,292 | ) | |||
Principal payments on finance lease obligations | (436 | ) | — | ||||
Other | (1,486 | ) | 165 | ||||
Net cash used in financing activities | (12,984 | ) | (10,060 | ) | |||
Effect of exchange rate changes on cash, cash equivalents and restricted cash | 61 | 592 | |||||
Decrease in cash, cash equivalents and restricted cash | (1,690 | ) | (5,391 | ) | |||
Cash, cash equivalents and restricted cash, beginning of period | 10,869 | 17,760 | |||||
Cash, cash equivalents and restricted cash, end of period | $ | 9,179 | $ | 12,369 | |||
Supplemental Information | |||||||
Cash paid for interest | $ | 13,438 | $ | 16,480 | |||
Cash (received) paid for income taxes, net | $ | (3,969 | ) | $ | 3,373 |
Segment Information
The following tables summarize the operating results of the Company's reportable segments:
Three Months Ended June 30, | Change | ||||||||||
(dollars in thousands) | 2026 | 2025 | Amount | % | |||||||
Revenue | |||||||||||
SaaS | ... |